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03/27/06 SP City Council Minutes [2]A SPECIAL MEETING [21 OF THE KALISPELL CITY COUNCIL WAS HELD AT 8:45 P.M., MONDAY, MARCH 27, 2006, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR PAMELA B. KENNEDY PRESIDED, COUNCIL MEMBERS JIM ATKINSON, KART GABRIEL, BOB HAFFERMAN, BOB HERRON, RANDY KENYON, TIM KLUESNER, DUANE LARSON AND HANK OLSON WERE PRESENT. Also present: City Manager Jarnes Patrick, City Attorney Charles Harball, City Clerk Theresa White, Public Works Director Jim Hansz, Parks and Recreation Director Mike Baker, Senior Planner Sean Conrad, Airport Manager Fred Leistiko, and Recording Secretary Judi hunk. A. AGENDA APPROVAL Larson moved approval of the Agenda. The motion was seconded. .There was no discussion. The motion carried unanimously upon vote. B. PUBLIC COMMENT None. C. REPORTS RECOMMENDATIONS AND SUBSEQUENT COUNCIL ACTION C/1. RESOLUTION 5101 AUTHORIZING NEGOTIATIONS FOR THE SALE OF THE ARMORY PROPERTY (Tabled March 20) Resolution 5101 authorizes the City Manager to negotiate a purchase and sale agreement, and a developer's agreement, with the Gateway Hospitality Group for the Armory property. Herron moved to remove Resolution 5101 from the table. The motion was seconded. The motion to remove carried upon vote with Atkinson, Gabriel, Hafferman, Herron, Kluesner, Larson, Olson, and Mayor Kennedy voting in favor, and Kenyon voting against. Patrick gave a staff report and answered questions. Hafferman said he is in favor of continuing negotiations, but he will not vote for the final sale unless the casino and height issues are resolved without the use of a PUD, and a decision is made on the dispensation of the money from the sale and from the taxes once developed. Kenyon commented he is not in favor of negotiations at this time because there are still a lot of questions that need to be answered and it has been his experience that once things get moving, the Council never back tracks. Kluesner asked if alternatives other than a PUD will be considered. Kalispell City Council Special Meeting Minutes (Armory) March 27, 2066 Page 1 Patrick answered yes, but emphasized a PUD does not circumvent the law. it's a matter of law that Council put in place in the zoning ordinance to allow for variations. He said the project will probably come forward with a PUD, regardless of the casino, because of the height issues. Patrick said a PUD is the legal means for resolving the issues. ,Herron suggested that an amendment to the casino rule and height restrictions be sent to the planning board simultaneously with this project. Mayor Kennedy said she would like to know the date of the appraisal because she has "heartburn over the price", which does not appear to be at a fair market rate. Patrick stated the price is right in the middle of what surrounding properties have been sold for. Herron commented the developer, at his expense, will have to remove the building and clean up the site. Patrick responded he cannot categorically say that is true. He said there may be some tradeoffs depending on the developer's agreement, which the Council wilt ultimately approve. Herron said he assumed one of the reasons the price is so low is because the expense of removing the Building would be borne by the developer. Mayor Kennedy agreed, stating she feels the demolition and any other costs involved with site preparation should be entirely borne by the developer and she hopes that would be part of the negotiation. Larson and Kluesner agreed that those costs need to be addressed in the developer's agreement. The motion carried upon roll call vote with Atkinson, Gabriel, Hafferman, Herron., Kluesner, Olson, and Mayor Kennedy voting in favor, and Kenyon, and Larson voting against. D. ADJOURN The meeting was adjourned at 9:1.7 p.m. ATTEST: Theresa White City Clerk Kalispell City Council Special Meeting Minutes (Armory) March 27, 2006 Page 2